The NSP is fully embedded in The Gambia’s Nationally Determined Contributions (NDC), which is also confirmed in the endorsement letter by the Ministry of Environment, Climate Change & Natural Resources (MECCNAR) of The Gambia.
This NSP is based on the NAMA “Rural Electrification with Renewable Energy in The Gambia” and the ‘Feasibility Study for Grid-Connected Solar Power Generation in The Gambia’, which were developed in 2015 and 2016 with the support of UNDP. The NSP outline further builds on an independent expert assessment for ‘Grid-Connected Solar PV in The Gambia‘, facilitated by the NAMA Facility.
The aim of the NSP is to support financing of grid-connected renewable energy Independent Power Producers (IPPs), which will be supplying electricity based on renewable energies (solar PV) into the six (4 of them interconnected) regional electricity grids. The targeted capacity is up to 12 MW solar energy with the option to increase the capacity in the future as the program and financing is ramped up.
The projects supported through the NSP will generate around 30-40,000 MWh of electricity from solar PV and will increase the share in renewable energy production in the regional grids to 43%. In the NDC, The Gambia commits to a reduction in overall emissions of 44.4% by 2025 and 45.4% by 2030. The projects therefore help in achieving the NDC target of The Gambia within the first NDC cycle.
Also, the funding of the NAMA Facility will support technical assistance for a tendering scheme and demand assessments for the connection sites. The overall contribution requested from the NAMA Facility is €10.6 million, which will be used to leverage private sector capital of around €15 million through the Paris Climate Bond structure to meet the overall investment requirements of €25.8 million. This leverage shall be achieved by structuring equity funds to de-risking the investment environment through first loss instruments, whereby returns on such investments are subordinated to private sector investments. This will allow The Gambia to add up to 12MW of solar PV to its energy mix in all regional grids within the five years project life time. The Paris Climate Bond will further enable The Gambia to transparently verify the environmental impacts in an economically viable and investable manner and contribute certified mitigation outcomes to its unconditional mitigation pledges under the Paris Agreement.
The NSP intends to generate annual emission reductions of at least 7,200 tCO2. Over 5 years, emission reductions are expected to add up to 57,600 tCO2. Over the next 10 years, emission reductions is estimated to be around 129,600 tCO2.